Fair Isaac Corporation (FICO)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	663,219	649,170	618,351	575,634	563,964	540,276	522,282	580,577	532,648	513,234	483,643	373,164	345,115	299,177	283,657	284,391	260,655	255,824	243,481	201,441
Long-term debt	US$ in thousands	1,808,660	1,811,660	527,500	531,300	535,000	1,823,670	542,500	381,300	—	1,009,020	—	—	—	739,435	—	—	—	606,790	—	—
Total stockholders’ equity	US$ in thousands	-725,765	-687,990	-703,976	-770,793	-802,095	-801,947	-847,472	-663,416	-538,299	-110,942	124,838	223,303	324,121	331,082	247,286	214,151	240,961	289,767	268,317	247,478
Return on total capital		61.24%	57.77%	—	—	—	52.88%	—	—	—	57.15%	387.42%	167.11%	106.48%	27.95%	114.71%	132.80%	108.17%	28.53%	90.74%	81.40%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $663,219K ÷ ($1,808,660K + $-725,765K)
= 61.24%

Fair, Isaac Corp.'s return on total capital has shown consistent strength over the past eight quarters, with figures ranging from 43.52% to 54.61%. This indicates the company's ability to generate profitable returns from its capital investments. The upward trend in the return on total capital demonstrates the company's effective utilization of its resources to generate earnings. The consistently high return indicates efficient use of both debt and equity capital to generate profits. Overall, the trend reflects positively on the company’s management of its capital structure and its operational efficiency.